Japan Is Urged to Be Cautious
Over Tighter Tax-Credit Rules

TOKYO -- The Japanese government ought to be cautious in introducing tighter rules on banks booking tax credits, the head of the Japanese Bankers Association said.

A financial advisory panel to Prime Minister Junichiro Koizumi compiled a draft report yesterday calling for tighter regulations on banks booking deferred-tax assets, or expected tax refunds, which banks can count as capital when they dispose of bad loans. But the panel also recommended putting off the introduction of such rules until next fiscal year or later.